Egyptian Chronicles: Spare Egypt from those foreign loans

Wednesday, May 25, 2016

Spare Egypt from those foreign loans

Just as Egypt was just in shock over the tragedy of EGYPTAIR MS804 on Thursday , many Egyptians found out that Russia would lend Egypt USD 25 billion to build its nuclear station in Dabaa.
Putin and Sisi "Ria" 
Yes , we are going to have another foreign loan according to what was announced in the Egyptian State's Official Gazette.
The Egyptian State's Official Gazette issued on Thursday "19 May 2016" included Presidential Decree "No.484" for the year 2016 to approve a loan from Russia to build and operate a nuclear power plant in Egypt.
According to the decree , Russia will lend Egypt USD 25 billion and in return Egypt will pay an interest rate of 3% annually starting from October 2029.
Egyptian will repay the loans over 22 years in 43 installments !!
I do not know what to say !!!
This is the biggest foreign loan in the modern history of Egypt.
Is it really worth it to add all those financial burdens on the future Egyptian generations to build an environmental threatening plant ??
Already , I do not understand how El-Sisi approved that loan without the discussion or approval of the House of the Representatives.
Article No.127 of the Current Egyptian Constitution already stipulates the following :
The executive authority may not contract a loan, obtain funding, or commit itself to a project that is not listed in the approved state budget entailing expenditure from the state treasury for a subsequent period, except with the approval of the House of Representatives.
I do not think that the Egyptian parliament approved that deal if I am not mistaken.
To be honest, I am not surprised if the Egyptian Parliament will approve such loan after all because its members voted overwhelmingly in favor of that defense loan agreement with France.
In March and for the first time in Egypt's modern History , the Egyptian ministry of defense signed an agreement with a number of French banks led by Credit Agricole in order to provide it with  3375.54 million euros to buy weapons from France.
By the way , the members of the parliament voted on that loan during the infamous Okasha-Israeli ambassador affair circus.
Needless to say , all the media attention was focused on Okasha and his circus.
Earlier in January during his visit to China , El-Sisi signed financing agreements by which China would lend Egypt over USD 800 million including loans so Chinese companies can construct the new administrative capital.
This is in addition to the loans from the World Bank and African organizations.
This is in addition to crazy and scary growing domestic debt !!
History does not repeat itself too often but we learned that once a great and true visionary man called Khedive Ismail borrowed from foreign countries to build mega-projects in Egypt and despite what he did , his economic policies ended up with disasters above them foreign dominance on the Suez canal and invasion.
If we are speaking about real priorities of Egypt , we do not need all those weapons or that nuclear plant or that administrative capital now.
If we are speaking about Egypt's National security then we should discuss those loans seriously.


  1. You are right.
    "Lana Allah Ala al Raba" Mohamed
    Sala Allah swt aliah WA Salam

  2. 3375.54 million €, not 33375.54 million €! Nevertheless, too much. This is what happens, when a military man becomes president.

  3. Concerned expat5/25/2016 01:41:00 PM

    Well, if members of parliament can be so distracted by what you call a circus, what would happen in time of real crisis?

  4. Is this even legitimate? Where is the parliament? Is the respectable Finance minister aware of the impact of that loan on future generation? Has the minister of foreign cooperation been involved in that loan? What about the minister of planning idea on the load and its consequences on our budget?

    What about the experts in the parliament? Are they going to blatantly accept the loan without discussion?

    This is unprecedented in Egyptian history (since the time of Khedive Ismail).

    I am definitely not into conspiracies, but the country president is either a complete retard and moron or he is a spy (a la Syrian Eli Cohen style) deliberately destroying Egypt for years to come. Someones gotta do something to save the country.

    I suggest you research how much has the Siemens power projects cost and how much capacity they added to Egypt's power generation capabilities, and the timeframe during which this project is being implemented. Compare that to the catastrophe taking place. Bear in mind that Germany is decommissioning its Nuclear power plant. I am not talking about safety but rather economic feasibility and return on investment.

    Well, if anyone is concerned about that loan, they will face the same fate as those who objected to the Tiran and Sanafir. Egypt is really going down the drain.

  5. Relax people, and stop being hysterical. Agreements that are entered into by the executive branch with other countries are not final until approved by parliament. That's a standard clause in these type of contracts, and Egypt is not the only country in the world that enters into agreements with other countries, which are later reviewed by parliament.

  6. To Anonymous of May 275/29/2016 11:13:00 PM

    Hey Anonymous, you are kidding, right? Do you think the ass kissing parliament will reject an agreement mainly endorsed by the President himself? The Sissi douche has just gave (back?) two islands to Saudi Arabia, modifying Egyptian borders and territories, without any regard to the constitution. The mentally retard dictator does not know the difference between legislative and executive branches.


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